Those who advise on, trade, or manage investments for others must make quick decisions to maximize their clients’ worth, and sometimes, their actions may appear to be fraudulent. The government is quick to pursue those it suspects of illegal actions, putting your future at risk if they turn their sights on you.
Facing charges of securities fraud can be frightening, even when they aren’t valid claims. If you are in this situation, it’s vital to know the main elements of securities fraud and how to avoid penalties. The Atlanta white-collar criminal defense lawyers at Griffin Durham Tanner & Clarkson LLC can guide you through the process by discussing securities fraud elements and other concerns.
How does the government define securities fraud?
The U.S. government describes securities fraud as presenting inaccurate or misleading information regarding a security to manipulate the value of that instrument for an individual’s own monetary benefit. These instruments can be stocks, bonds, certificates of deposit, treasury investments, and similar items under the jurisdiction of the Securities and Exchange Commission (SEC). Those who commit securities fraud usually do so to influence the performance of a product they wish to sell or buy so they reap a greater financial windfall.
Suspicious behaviors include brokers who embezzle money, use advanced fee tactics before trading occurs, and use Ponzi or pyramid schemes. Whether you have actually engaged in securities fraud or not, defending yourself against the U.S. government requires representation from highly skilled attorneys. The Federal Bureau of Investigation (FBI) will pursue criminal charges against fraudulent actors, while the SEC or private investors serve as the plaintiffs in civil cases.
The elements of securities fraud
The primary element of securities fraud is proof of an intentional misrepresentation by the defendant of information regarding transactions for a security. An additional element is proof by the plaintiff of the detrimental harm they suffered due to the defendant’s actions. Attorneys for each side will work to collect evidence demonstrating whether or not the following occurred:
- The defendant intentionally engaged in fraudulent activities or business practices connected to the sale or purchase of a security.
- The defendant’s statements were untrue or misleading, or the defendant omitted pertinent information in their representation for the security.
- The defendant used any means of interstate commerce, including the mail and online methods, to facilitate a securities exchange.
- The defendant used any scheme, artifice, or device with the intention to defraud others.
The plaintiff must demonstrate certain elements, including that there was a causal relationship between the defendant’s alleged fraudulent actions and the plaintiff’s harm. If you are charged with securities fraud, your Atlanta white-collar defense attorneys will fight against these claims using various techniques. They will pursue evidence that shows how the loss could have occurred due to other factors besides fraud.
How do I defend myself against charges of securities fraud?
If you believe you are a target of securities fraud charges, act immediately to secure experienced legal representation. These cases are extremely complicated and require defense attorneys with a strong background in understanding how laws such as the Securities and Exchange Act of 1934 will affect your case.
Potential defense techniques include:
- Challenging the evidence against you: Before you appear in court, your attorney will work to dismiss or negate as much evidence as possible. They will search for inconsistency, questionable sources, and issues with the chain of custody to remove material from the court’s consideration.
- Demonstrating lack of intent: You may have been in the wrong place at the wrong time, taking the fall for others who actually committed fraud. Your attorney will show how you acted in good faith, how your statements weren’t intentionally deceptive, and engage character witnesses to disperse claims of intentional fraud.
- Addressing the statute of limitations: Under 29 U.S.C. § 2462, parties must bring a securities fraud case within five years of the alleged action. Your defense lawyer determines whether the start date falls within the statute and whether any circumstances could affect that time period.
Because you could be facing both a criminal trial and civil lawsuits from individuals or companies, you will need a powerful law firm with sufficient resources. Your defense attorneys will educate you about how they will prepare your case. You must be clear and honest with them regarding your actions so they can properly defend you for the best possible outcome.
Speak with our securities fraud defense team today
Securities fraud charges can result in harsh financial penalties and as many as 25 years in federal prison upon conviction. Facing this prospect is extremely serious, and you will need accomplished white-collar criminal defense lawyers working diligently to protect your freedom and your rights at trial.
At Griffin Durham Tanner & Clarkson LLC, we offer top-quality defense strategies with flexible fee arrangements so you get the representation you need. Call us at (404) 891-9150 or schedule a consultation online today.